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Registrant Information
> Trust Accounts
>> Trust Ledger
Commission Bylaw 604 requires that all brokerages maintain an electronic version and/or hard copy trust ledger for their real estate transactions. The following information must be recorded in the trust ledger: name(s) of the buyer and seller; property address; dates and amounts of the trust funds received and disbursed, a running balance of the trust funds held; and a transaction number (if a file numbering system is being utilized).
EXAMPLE OF TRUST LEDGER
ABC REALTY LTD.
Trust LEDGER
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| Date |
Description |
File # |
Folio |
Amount
Received
DR. |
Amount
Disbursed
DR. |
Balance |
| June 12 |
Deposit - 3929 8th Street
Brown to Smith |
Year-001 |
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2,000.00 |
|
2,000.00 |
| June 12 |
Deposit - 1517 Taylor Street
Adams to Black |
Year-002 |
|
5,000.00 |
|
7,000.00 |
| June 15 |
Deposit - 1910 Preston Avenue
Jones to White |
Year-003 |
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3,000.00 |
|
10,000.00 |
| June 18 |
Deposit - 1501 - 101st
Miller to Green
[Deposit held 90-day GIC #6789]
[Interest payable direct to Green] |
Year-004 |
|
20,000.00 |
|
30,000.00 |
| June 19 |
Deposit increase - 3929-8th Street
Brown to Smith
[Total Deposit held in Special Trust]
[Acct.#34567]
[Interest payable direct to Smith] |
Year-001 |
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3,000.00 |
|
33,000.00 |
| June 23 |
Deposit - 1414 Quebec Ave
Folk to Toth
[Total Deposit held in Special Trust]
[Bank of Canada Savings Account]
[#54321, Interest payable direct to Toth] |
Year-005 |
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15,000.00 |
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48,000.00 |
| July 12 |
Commission to General
1517 Taylor Street
Adams to Black |
Year-002 |
CK001 |
|
5,000 |
43,000.00 |
| July 21 |
Commission to General
3929-8th Street
Brown to Smith |
Year-001 |
CK002 |
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5,000 |
38,000.00 |
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Some brokerages may find that creating individual client trust ledger cards for each trade in real estate helps keep track of their deals. Information on client trust cards, although file specific, is the same information already recorded in the client trust ledger. The following is an example of a client trust card:
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EXAMPLE OF INDIVIDUAL TRUST LEDGER
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| Year |
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Items |
Folio |
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Disbursements |
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Receipts |
Balance |
| June |
12 |
Deposit |
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2,000.00 |
2,000.00 |
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19 |
Deposit increase |
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3,000.00 |
5,000.00 |
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[Deposit held in Special Trust #345-67] |
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[with interest earned payable direct to Smith] |
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21 |
Commission to general |
CK002 |
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5,000.00 |
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NOTE: Interest earned from Special Trust accounts may be paid direct to the beneficiary (client) by the financial institution. The issues to be concerned with are:
1. all parties to the transaction aware of the interest payment provisions as this was likely written into the Contract of Purchase and Sale; and
2. the interest paid generates a T-5 and must be reported to Canada Customs and Revenue Agency in the year received.
The Saskatchewan Real Estate Commission holds registrants responsible for the accuracy of trust account information.
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